Gujarat BoardEnglish MediumSTD 11 CommerceEconomicsMarket3 Marks
Question
Explain the meaning of market.
✓
Answer
In economics, the concept of market is very wide.
A market has nothing to do with any particular place but it is connected with the direct each h contact of buyers and sellers.
Buyers and sellers may not meet directly but they are in contact with ea other through telegram, mail, telephone, telex or fax internet or through website and undertake the process of exchange.
Even then, the market comes into existence.
According to Samuelson :
"A market is a mechanism through which buyers and sellers interact to determine prices and exchange goods and service.
" Prof. Benham has explained the meaning of the word 'market' in the following words, "A market is an organization where buyers and sellers exchange goods through direct or indirect contact.
The effects of prices prevailing in one part of the market, affect the other part of market and as a result there is a tendency of uniform price for the same commodity in the market.
Following are the characteristics of the market.
Existence of buyers and sellers.
A commodity or service must be available for purchase.
The place is not necessary for the market but it is necessary for the buyers and sellers to be in touch with each other directly or indirectly.
There should be interaction of exchange between them and both the parties should agree to a price.
Buyers and sellers should know the situation of the market.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.